South Korea, Turkiye Extend Currency Swap Deal

South Korea and Turkiye have agreed to extend their currency swap deal by three years. The Bank of Korea (BOK) said today that the three-year agreement, signed by the BOK and the Central Bank of the Republic of Turkiye, allows for the exchange of local currencies between the two countries, South Korea's News Agency (Yonhap) reported. "This arrangement is designed to promote bilateral trade through a swap-financed trade settlement facility and financial cooperation between the two countries," the two central banks said in a statement. In 2021, the two countries signed their first three-year, 2.3 trillion-won (roughly $2 billion) currency swap agreement in a move to boost bilateral trade. A currency swap is a tool for defending against financial turmoil by allowing a country beset by a liquidity crunch to borrow money from others with its own currency. Source: Oman News Agency